TCS bribery scam: 16 workers fired; 6 staffing companies prohibited

 TCS bribery scam: 16 workers fired; 6 staffing companies prohibited

The investigation closure report was released months after the corporation investigated into allegations that staffing companies had bribed senior employees in charge of hiring procedures to win contracts.

The IT giant fired 16 workers and prohibited 6 of its business affiliate businesses.

TCS had said in June that a whistleblower had alerted management to a recruiting fraud. CEO K Krithivasan stated that the company had concluded its investigation into the recruitment scam and had taken necessary measures.

The biggest IT firm in India, Tata Consultancy Services (TCS), said in an exchange filing that its investigation into a case of recruitment malpractice that surfaced earlier this year was concluded.

According to the exchange filing, the IT giant fired 16 workers after conducting its inquiry and blacklisted six business partner businesses. Additionally, the corporation has prohibited six vendor businesses, their owners, and affiliates from doing any business with them.

The exchange filing said, "Our investigation revealed that 19 employees were implicated, and action has been taken against all of them as described below - 16 employees have been terminated from the Company for violating the code of conduct, and 3 workers have been removed from the Resource Management role.

Job Bribery at TCS

The investigation closing report was released a few months after the corporation investigated into allegations that staffing companies had bribed top managers in charge of hiring decisions in order to get business.

A recruitment scheme had been reported to management by a whistleblower, TCS said in a stock market statement from June.

Tata Sons Chairman N Chandrasekaran later said at the company's AGM that the business has already begun investigating, terminating six workers and staffing agencies.

Chandrasekaran described the progression of the problem. HR and talent acquisition are the two divisions in the firm that are typically engaged in hiring. However, the organization maintains a list of business partner companies or staffing agencies from whom they may source contract workers in the event of a talent shortage or a requirement for a certain ability that is not accessible in a particular region.

"At any given time, about 2% to 3% of the total resources deployed are such BAs or contractors," he said. The accusation centered on specific business employees who collaborated with certain BA companies to conduct favorable recruitment.

"TCS collaborates with a sizable number of BA businesses. To qualify as a BA business, a company must go through a rigorous recruitment procedure. We need resources in 55 such nations, thus there are just over 1,000 such enterprises worldwide. According to the availability of their skills, each of them also does a certain amount of business, Chandrasekaran said.

Chief Executive Officer K Krithivasan said at a press conference held after the business released its second quarter results that the company had finished its investigation into the recruiting fraud and had taken the necessary measures.

We have concluded our probe, Krithivasan stated. Whoever we feel breached our code of conduct has been subject to the necessary action. Depending on the kind of infraction, different steps are taken, but all has been done, and the case is concluded.